Stock Market Maintains Previous Losses As NSE ASI Depreciates By 1.96%

PanAfrican Capital – Equities market closed the day’s trading session in the red zone as the NSE All-Share Index and Market Capitalisation depreciated by 1.96% to close at 40,696.01 and ₦21.29 trillion respectively.

The Year-to-Date (YtD) and the Quarter-to-Date (QtD) returns stand at 1.06% and 1.06%, while the Month-to-Date (MTD) and Week-to-Date returns stand at -4.05% and -2.43% respectively.

NSE Sector Indices:

Of all the Industries on the NSE within our coverage, 5 sectors declined in points while one remained flat.

The NSE sector indices that declined in points were NSE CONSUMER GOODS (-0.38%), NSE INSURANCE (-1.15%), NSE 30 (-2.19%), NSE BANKING (-3.36%) and NSE PREMIUM (-3.67%). Others remained unchanged.

The market breadth (gainers/losers) of 0.35x for the day indicates that the number of sellers outpaced the number of buyers in the market today.

At the end of the day’s trading, 13 stocks advanced as 37 stocks declined; NIGERINS (+10.00%), CHAMPION (+9.82%) and WAPIC (+7.41%) led the gainer’s chart while SUNUASSUR (-10.00%), FIDSON (-10.00%) and ETRANZACT (-10.00%) led the losers’ chart for the day.

The day’s trading activities by volume was led by ZENITH BANK (43.74million), FBNH (40.03million) and GUARANTY (35.98million) while the activity by value was led by GUARANTY (₦1.17billion), ZENITH BANK (₦1.10billion) and MTNN (₦0.85billion).

Outlook:

The stock market maintained previous losses as NSE ASI depreciated by 1.96%. The recent selloffs in the equities market have been attributed to the marginal rise in yields in the fixed income space.

Notwithstanding, this is very likely to create entry opportunities for investors. However, optimisms persist that the bull run will be retained in the market. We, therefore, advise our clients not to engage in panic selling as we expect the equity market to maintain positive growth due to the expectation of dividend payment in the year.

FIXED INCOME REPORT AS AT FEBRUARY 9, 2021

Treasury Bills Market:

In the treasury bills markets, the average yield remains unchanged as it closed at 1.14% today (vs. 1.14% average market yield of last trading session). At the end of the trading session today, the 15-Apr-21, 29-Jul-21 and 13-Jan-22 bills closed at 0.47% (0.00%), 1.00% (0.00%), and 1.95% (0.00%) respectively.

FGN Bond Market:

In the bond market, the average market yield increased by an average of 128bps as it closed at 5.11% as against 4.95% of the previous session. The result for the 14-Nov-2021, 27-Apr-2023, 23-Mar-2025, 17-Mar-2027, 20-Nov-2029, 18-Mar-2036 and 26-Apr-2049 bonds traded are 1.53% (0.15%), 3.50% (-0.04%), 5.42% (-0.02%), 6.42% (-0.08%), 7.12% (0.00%), 7.80% (0.00%) and 8.65% (1.27%) respectively.

Foreign Exchange Market:

At the FX Market (CBN Official Window), Naira remains unchanged, closing at ₦379.00/$ today compared to the ₦379.00/$ it traded in the previous trading session. On Investors
and Exporters Window, Naira depreciated by 250 kobo against the dollar as it closed at ₦401.00/$ today (vs. ₦398.50/$ it closed in the previous trading session).

Money Market:

In the Money Market today, the REPO rate decreased by an average of 100bps to ease liquidity. At the end of the trading session, the call, 1M, 2M, 3M rate closed at 10.00% (-
0.50%), 10.00% (-1.50%), 11.50% (-1.50%) and 12.50% (-0.50%) respectively.

However, Open-Buy-Back (OBB) and Overnight (O/N) rate decreased by an average of 550 bps, closing at 8.50% and 8.75% respectively.